A privately-financed Property Assessed Clean Energy (PACE) project in Michigan will involve over $1 million of improvements to the 1-800-Law-Firm building in Southfield. Over $500,000 will be financed through PACE, a tool that allows any business to use a property tax assessment to obtain much longer term financing than is otherwise available in the capital markets.
Lean & Green Michigan is the administrator of Southfield’s PACE program, which is a public-private partnership. The project will add solar and wind generating capacity, electric vehicle charging stations, and additional efficiency measures to the building.
Lean & Green Michigan is a statewide PACE program open to all Michigan counties and cities for free. Already, six counties and two cities with a total population of 3.6 million (37 percent of all Michiganders) have joined Lean & Green Michigan’s PACE.
Business property owners can finance almost any combination of clean energy improvements to their buildings through PACE, including energy and water efficiency measures and renewable energy generation. In general, for a project to be approved it must be cash flow positive for the property owner. That means that the energy savings must be greater than the payments throughout the life of the finance term.